Low In Consumer Optimism May Spell Opportunity

Posted by Tim Hope on 5/19/08 10:32 am

Consumer optimism is presently at a 10 year low.  Interestingly, the prior low occurred during the first quarter of 2003 which very closely coincided with the low in the S&P 500 for the past decade.  As consumer optimism rebounded so too did the market as over the next five years it climbed nearly 71% from its low.  The spending power of the consumer should not be underestimated in generating corporate profits.  A turnaround from current levels in consumer sentiment may therefore have a significant bullish impact on the market.

To receive email updates from Navellier Market Observations Blog, click here.

• 
• Email
• Comments (0)